Mortenson Dental Partners is one of the few employee-owned dental organizations in the country. Mortenson balances Department of Labor and Internal Revenue Service regulations with state dental practice regulations to successfully sponsor its ESOP.
In recent years, the Department of Labor has been more concerned about ESOPs paying for control when, in the DOL’s view, it doesn’t really need to do so or is acquiring control more in form than substance.
Initial results from the NCEO’s 2016 survey of corporate governance practices in ESOP companies show the range of current practices in the composition and compensation of boards of directors and the various approaches companies take toward ESOP trustees.
The responsibility to create effective alignment should never rest solely with committees themselves. Leadership can play a significant role in both enabling committees to be successful and supporting them through some of their biggest challenges when it comes to creating a strong culture of ownership. There are several things to consider when working to create more effective alignment of between each group’s goals and the practices that will help all teams involved achieve them.